Loan Origination

Definition

The entire process of creating a mortgage from application through funding. It's the bureaucratic journey that turns your desperate desire to buy a house into actual dollars.

Example Usage

Loan origination took six weeks from application to funding—typical for a complex transaction with multiple contingencies.

Origin

Banking term used to describe the birth of a loan product

Fun Fact

Loan origination fees (1-2% of the loan amount) are how lenders make money upfront before you start paying interest.

Source: Mortgage Lending Process

Related Terms

Intermediate

Comparable

A nearby property that supposedly proves your house is worth what someone says it is, despite having completely different everything. It's the real estate version of comparing apples to slightly different apples that sold six months ago.

🏠 Real Estate

Advanced

pocket commission

The extra compensation an agent receives when representing both buyer and seller, also called double-ending. Twice the work or twice the conflict of interest, depending on who you ask.

🏠 Real Estate

Intermediate

prepayment penalty

A fee charged for paying off a mortgage early, compensating lenders for lost interest income. It's the bank's way of punishing you for financial responsibility and denying them years of interest payments.

🏠 Real Estate

Intermediate

escalation clause

A contract provision that automatically increases your offer above competing bids up to a maximum price. It's bidding war automation for people who enjoy financial anxiety.

🏠 Real Estate

Intermediate

Covenants, Conditions & Restrictions (CC&R)

Rules governing what you can do with your property, proving that ownership is really more of a suggestion.

🏠 Real Estate

Beginner

fixture

Personal property that has been permanently attached to real estate and legally becomes part of the property. The eternal battleground of what stays and what goes when you sell.

🏠 Real Estate

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